Business

Costly confusion

Article Abstract:

The onerous and monumentally expensive Sarbox legislation resulted in 1,300 companies reporting material internal control weaknesses. The 50% increase in the number of earnings restatements in 2005 did not relate to Sarbox laws at all, but arose chiefly from good old accounting issues such as when to recognize earnings or how to calculate interest accruals.

Win some, lose some

Article Abstract:

The Revenue's predilection for assessing taxes by reference to accounting treatments make one wonders about the potential reversal that FRED 39 represents. FRED 39 introduces changes to FRS 12, starting with the proposal that all three terms in the title should be expunged from the accounting lexicon.